Glossary
Sales funnel
The sales cycle, from beginning to end
The sales funnel represents how deals move through your organization, from start to finish.
Marketing teams will define stages in a sales funnel differently (see Buyer’s Journey), but this is how sales teams should view the sales funnel:
Leads start at the top of the funnel, also known as “ToFu.” Here you’re prospecting leads and engaging them in new conversations. They’re not qualified yet- they may not even be responding yet- but there’s some attempt being made and conversations are beginning.
Next is the middle of the funnel, or MoFu. At this point deals are created in the sales pipeline and represent qualified opportunities. Sales reps are working these active opportunities, conducting demos and giving presentations.
Finally, deals make it to the bottom of the funnel, or BoFu. Here, contracts are being sent, negotiated and signed. Depending on your sales org, most deals in the bottom of the funnel should have at least some sort of soft commitment. At this stage there’s still plenty that can get in the way. Deals aren’t won until they’re through this stage and the ink is dry.
In all sales funnels, volume decreases significantly as you go from the top of the funnel, to the middle and into the bottom of the funnel. The most time-tested truth in sales is that, if you wish to increase your bottom line, focus on improving volume at the top of your funnel. This nearly always has a greater impact than optimizing the middle of the funnel and bottom.
Marketing teams will define stages in a sales funnel differently (see Buyer’s Journey), but this is how sales teams should view the sales funnel:
Leads start at the top of the funnel, also known as “ToFu.” Here you’re prospecting leads and engaging them in new conversations. They’re not qualified yet- they may not even be responding yet- but there’s some attempt being made and conversations are beginning.
Next is the middle of the funnel, or MoFu. At this point deals are created in the sales pipeline and represent qualified opportunities. Sales reps are working these active opportunities, conducting demos and giving presentations.
Finally, deals make it to the bottom of the funnel, or BoFu. Here, contracts are being sent, negotiated and signed. Depending on your sales org, most deals in the bottom of the funnel should have at least some sort of soft commitment. At this stage there’s still plenty that can get in the way. Deals aren’t won until they’re through this stage and the ink is dry.
In all sales funnels, volume decreases significantly as you go from the top of the funnel, to the middle and into the bottom of the funnel. The most time-tested truth in sales is that, if you wish to increase your bottom line, focus on improving volume at the top of your funnel. This nearly always has a greater impact than optimizing the middle of the funnel and bottom.